https://www.taxtmi.com/caselaws?id=208281 MODVAT credit standing in the account of a DTA unit lapses when the unit is converted into a 100% EOU, because the MODVAT scheme ceases to apply under Rule 100H of the Central Excise Rules, 1944. The remaining balance cannot be treated as refundable cash merely because the unit can no longer utilise it. A revenue circular was read consistently with this position, and the argument that the debit was akin to a pre-deposit did not alter the result, since any restored credit would also lapse after conversion. Refund of the MODVAT credit was therefore held inadmissible after conversion into a 100% EOU. en-us Tue, 25 Oct 2011 00:00:00 +0530 Tue, 28 Aug 2012 17:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=208281 MODVAT credit standing in the account of a DTA unit lapses when the unit is converted into a 100% EOU, because the MODVAT scheme ceases to apply under Rule 100H of the Central Excise Rules, 1944. The remaining balance cannot be treated as refundable cash merely because the unit can no longer utilise it. A revenue circular was read consistently with this position, and the argument that the debit was akin to a pre-deposit did not alter the result, since any restored credit would also lapse after conversion. Refund of the MODVAT credit was therefore held inadmissible after conversion into a 100% EOU. Case-Laws Central Excise Tue, 25 Oct 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=208281